Between 2011 and the third quarter of 2016, the percentage of tech deals with Chinese investment grew from 1.7% to 4.1%

Chinese investment in American startups is booming, but some of these investors are finding it difficult to navigate the U.S. venture world.

Ivy Li used to help American companies tackle the Chinese market. She worked in Beijing as the managing director for the China office of venture firm Greylock Partners, and advised LinkedIn Corp. on its China strategy. In 2014, she moved to Silicon Valley and launched Seven Seas Partners with the former chief technology officers of Chinese internet companies Tencent Holdings Ltd. and...